Phillips 66 · NYSE:PSX
Phillips 66 — Q4 2023 Earnings Presentation
24 slides from Phillips 66's earnings presentation, Jan 31, 2024
Slide 1: The Hartford's Fourth Quarter and Full Year 2023 Financial Results
4Q21 CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% The Hartford’s Fourth Quarter and Full Year 2023 Financial Results The Hartford Financial Services Group, Inc. | February 1, 2024
Slide 2: Safe Harbor Statement
4Q21 SAFE CORE HARBOR EARNINGS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% STATEMENT Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about The Hartford’s
Slide 3: The Hartford: Diversified insurer with core strengths and market leadership
THE HARTFORD 4Q21 CORE Diversified EARNINGS insurer 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% with core strengths and market leadership Hartford Funds Other 4% 1% Market leader in desirable segments with high Personal return characteristics Lines 14% Delivering consistently strong results
Slide 4: 2023 – Disciplined Execution
2023 – DISCIPLINED EXECUTION 4Q21 COREdelivered… The Hartford EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% Growth: P&C net written premium growth of 10%, including 9% in Commercial Lines in 4Q23 Group Benefits fully insured ongoing premium growth of 6% in 4Q23 Book Value Per Diluted S
Slide 5: 4Q23 Core Earnings by Segment
4Q21 CORE EARNINGS1 OF $935 4Q23 $697 MILLION, EPS1,2 OF $3.06, $2.02, ROE1,3 OF 15.8% 12.7% Edit Core Earnings (loss) By Segment ($ in millions, except per share amounts) 4Q23 4Q22 Change4 Commercial Lines $723 $562 29% Personal Lines 36 42 (14)% P&C Other Operations (1) (5) 80% Property & Casualty
Slide 6: FY 2023 Core Earnings by Segment
4Q21 FY CORE CORE EARNINGS1 OF EARNINGS 1 OF $2.8 $697 BILLION, MILLION, 1,2 OF EPSEPS 1,2 OF $8.88, $2.02, ROE 1,3 OF ROE 1,3 OF 15.8% 12.7% Edit Core Earnings (loss) By Segment ($ in millions, except per share amounts) FY 2023 FY 2022 Change4 Commercial Lines $2,194 $1,925 14% Personal Lines (29)
Slide 7: 4Q23 Key Business Highlights vs. 4Q22
4Q23 CORE 4Q21 KEY BUSINESS EARNINGSHIGHLIGHTS VS. 4Q22 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% PROPERTY & CASUALTY Strong contribution from Commercial Lines with growth across the segment Written premiums Combined ratio (%) Underlying combined ratio1 (%) $3.8B 10% 93.7 92.1 4.6pts 89.2
Slide 8: 2023 Key Business Highlights vs. 2022
2023 KEY 4Q21 COREBUSINESS EARNINGSHIGHLIGHTS VS. 2022EPS1,2 OF $2.02, ROE1,3 OF 12.7% 1 OF $697 MILLION, PROPERTY & CASUALTY Strong contribution from Commercial Lines with growth across the segment Written premiums Combined ratio Underlying combined ratio1 (%) $15.5B 10% 92.1 94.9 0.3 pts 90.2 0.7
Slide 9: Commercial Lines
COMMERCIAL LINES 1 4Q21 StrongCORE EARNINGS contributions OFbusiness from each $697 MILLION, continue EPS 1,2 OF $2.02, ROE1,3 OF 12.7% to deliver profitable growth Written premiums of $3.0 billion in 4Q23 were up 9% from 4Q22 with increases across Commercial Lines Renewal Written Pricing % the segm
Slide 10: Personal Lines
PERSONAL LINES 4Q21 CORErate Double-digit EARNINGS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% actions being taken to address higher auto claim loss costs Personal Lines Renewal Written Price Increase % Written premiums of $780 million increased by 12% compared to 4Q22 Renewal written price
Slide 11: Group Benefits
GROUP BENEFITS 4Q21 CORE Top line EARNINGS growth 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% and strong margins in 4Q23 Core Earnings1 and Core Earnings Margin Core earnings margin1 of 9.8% compared with 8.5% in 4Q22, reflecting earnings generated from ($ in millions) growth in fully insure
Slide 12: Hartford Funds
HARTFORD FUNDS 4Q21 COREfee High return, EARNINGS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% generating business Total AUM4 ($ in billions) Core earnings1 of $39 million in 4Q23 is flat compared to 4Q22 due to higher net investment income partially offset by a slight increase in expenses Mu
Slide 13: Corporate
CORPORATE 4Q21 CORE Core loss EARNINGS 1 of $36 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% million compared to a core loss of $33 million in 4Q22 Corporate Holding Company Resources ($ billion) Components of Corporate Core Losses ($ in millions) 4Q22 1Q23 2Q23 3Q23 4Q23 Net investment incom
Slide 14: The Investment Portfolio
THE INVESTMENT PORTFOLIO 4Q21 COREand High quality EARNINGS 1 1,2 1,3 diversified OF $697 MILLION, EPS OF $2.02, ROE OF 12.7% Invested Assets3,4 by Sector $55.9B as of December 31, 2023 Net investment income of $653 million benefited from an increase on the annualized portfolio yield, excluding limi
Slide 15: Core Earnings ROE
CORECORE 4Q21 EARNINGS ROE11 OF EARNINGS OF 15.8% IN 4Q23 EPS1,2 OF $2.02, ROE1,3 OF 12.7% $697 MILLION, Consolidated Core Earnings ROE P&C Core Earnings ROE Group Benefits Core Earnings ROE Net income ROE of 17.5% versus 11.7% in 4Q22 Core earnings ROE of 15.8% versus 14.5% in 4Q22 4Q23 trailing
Slide 16: Book Value Per Diluted Share and Capital Returned
BVPSCORE 4Q21 (EX. AOCI) 1 OF $58.83 EARNINGS AT DECEMBER 1 OF $697 31,1,2 MILLION, EPS 2023 OF $2.02, ROE1,3 OF 12.7% Book value per diluted share of $49.43 increased from $41.67 at December Capital Returned to Stockholders ($ in billions) 31, 2022, principally due to net income in excess of stockh
Slide 17: The Hartford's Priorities
THE HARTFORD’S PRIORITIES 4Q21 COREstrategies Our focused EARNINGS 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% to produce desired outcomes Advance leading underwriting capabilities across our portfolio to offer expanded products and services Emphasize digital, data and analytics, and data sc
Slide 18: Stockholder Value Creation
STOCKHOLDER VALUE1 CREATION 4Q21 A clearCORE EARNINGS roadmap to generateOF $697risk-adjusted superior MILLION, EPS 1,2 1,3 returnsOF $2.02, ROE OF 12.7% Accelerate profitable Unwavering focus on Consistent generator Ethical culture organic growth across ROE performance, of excess capital, supportin
Slide 19: Appendix
4Q21 CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% APPENDIX 19
Slide 20: Expected 2024 Holding Company Resources
4Q21 CORE EARNINGS THE HARTFORD’S 1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% EXPECTED 2024 HOLDING COMPANY RESOURCES Expected sources of holding company resources in FY24 include: Net P&C dividends of approximately $1.5 billion Group Benefits dividends of approximately $600 million Hartford
Slide 21: 2024 Property Catastrophe Treaties
2024 PROPERTY 4Q21 CATASTROPHE CORE EARNINGS TREATIESEPS1,2 OF $2.02, ROE1,3 OF 12.7% 1 OF $697 MILLION, Primary Catastrophe Treaty Reinsurance Coverages as of January 1, 2024 [1] Portion of losses reinsured Changes from 2023 program Per Occurrence Property Catastrophe Treaty from 1/1/2024 to 12/31/
Slide 22: Hartford Next
HARTFORD NEXT 4Q21 CORE EARNINGS1 OF $697 MILLION, EPS1,2 OF $2.02, ROE1,3 OF 12.7% Successful initiative with savings of $636M through 2023 Total Impact to Core Earnings1 Updated Hartford Next Assumptions ($ in millions) Hartford Next savings exceeded previous estimates of $625M FY 2023 Incurred ex
Slide 23: Discussion and Reconciliation of Non-GAAP Financial Measures
DISCUSSION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 23
Slide 24: Discussion and Reconciliation of Non-GAAP Financial Measures
4Q21 DISCUSSION CORE EARNINGS1 OF $697 MILLION, AND RECONCILIATION EPS1,2 OFFINANCIAL OF NON-GAAP $2.02, ROE1,3 MEASURES OF 12.7% The Hartford uses non-GAAP financial measures in this presentation to assist investors in analyzing The Hartford's operating performance for the periods presented herein.